INDEX UPDATE
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It now appears that most are now expecting a runup this week and in some cases a very strong runup.
I just want to express caution that this market can go in either direction. One thing which I can say with alot of confidence is that we have huge volitility.
Here are the intraday price swing (highs minus lows) for the last 9 trading days: 556, 496, 185, 200, 264, 382, 177, 345, 296. Such comes to an average of 322.33 point intraday price swings.
Lets say hypothetically that Monday is up very strong to the 8100 resistance line, which would be about a 300 point price swing. Just staying with the average price swing, the DOW could be retesting the lows again at 7400 within 2-3 days after hitting 8100.
I guess what Im saying is that if one owns options which are profitable, they could lose all of their gains or more in one day.
I feel that right now we are at a stair-step at 7750-7800 with the downside of 7400 and an upside of 8050/8100. Have noticed that as we move away from the stair-step the market does not stay at the extremes very long, whether upside or downside.
Seeya |
